Related Federal Cases
- Elmostafa Charif, Designer Drug Trafficking, New Jersey 2024 · Pennsylvania
- Alin Carabus, ATM Skimming Scheme, New Jersey 2024 · Pennsylvania
- Ricardo Reid, Mail and Wire Fraud Conspiracy, New Jersey 2024 · Virginia
- Javan Smith, Interstate Transportation of Stolen Property, New Jersey · Washington
- Anthony Warner, Currency Smuggling, New Jersey 2016 · New Mexico
Essex County Man Admits to Defrauding U.S. DoD, Rigging Bids
NEWARK, N.J. – Alan Aranowitz, 75, of Roseland, New Jersey, has pleaded guilty to engaging in multiyear schemes to defraud the U.S. Department of Defense (DoD) by providing military equipment parts that were not authorized under the governing contracts and agreeing with another individual to rig bids for DoD contracts.
According to court documents, Aranowitz owned and operated Arlo Corporation (Arlo), which entered into contracts with the DoD to supply replacement parts for the military, such as screws, nuts, and bolts. He conspired with two owner/operators of two companies to provide cheaper counterfeit and/or non-conforming parts to the DoD.
Aranowitz submitted bids to the DoD in the name of one of the companies with the owner/operator’s knowledge and approval. By committing these acts, Aranowitz and his conspirators increased their own profits. DLA received numerous Product Quality Deficiency Reports (PQDRs) from U.S. military end users reporting that a particular part supplied by Arlo did not physically conform to the contract specifications.
As part of the plea, Aranowitz agreed to forfeit $684,168 in proceeds of the fraudulent scheme charged in Count One and to pay restitution in the amount of $878,644 to the DoD. He also faces charges of wire fraud conspiracy, with a statutory maximum of 20 years in prison, and a $250,000 fine, which could run consecutively.
U.S. Attorney Philip R. Sellinger credited special agents of U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Brian J. Solecki, and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, with the investigation leading to the guilty plea.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the Criminal Division in Camden. Sentencing is scheduled for Oct. 29, 2024.
Aranowitz’s crimes have left a trail of financial losses for the DoD, with a total amount of $878,644 in restitution to be paid. The guilty plea serves as a reminder of the importance of accountability in government contracts and the consequences of defrauding the U.S. DoD.
The investigation was led by the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, and Homeland Security Investigations Newark. The case is being prosecuted by the U.S. Attorney’s Office for the District of New Jersey.
Key Facts
- State: New Jersey
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News